BlackRock Cuts Trading Spread on ETHA ETF with Reverse Split

BlackRock's Ethereum exchange-traded fund (ETF), ETHA, will undergo a 1-for-3 reverse split in October. This move is expected to reduce trading spreads from approximately 7 basis points to around 2 basis points.

The adjustment aims to improve market efficiency and investor experience. According to Bloomberg ETF analyst Eric Balchunas, the lower spread will make ETHA more attractive to investors, particularly large institutional participants who execute significant transactions.

BlackRock's decision reflects the growing maturity of crypto investment products as major financial institutions refine ETF structures to improve liquidity, accessibility, and investor experience.